GHERU LAL BAL CHAND Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE respondent filed a complaint under section 276(C)/227 of the Income Tax Act, 1961 (for short, the Act) read with Section 109 IPC alleging that the petitioners-accused i.e. petitioner No. 1, partnership firm and petitioners No. 2 to 6, partners of the said firm, were guilty of maintaining duplicate set of books of account to evade income tax. It is stated in para 5 of the complaint that Shanker Lal Sharda, petitioner No. 2, submitted a return of income tax for the assessment year 1977-78. From the books of account, concealment of income was found. On the basis of information received, statement of Madhu Sudhan Sharda, petitioner No. 3 was recorded, from which an inference of concealment of income was drawn. Finally complaint was filed on 31.3.1984 alleging commission of offence as above. Apart from the firm, petitioner No. 1, petitioners No. 2 to 6, who were partners, were also arrayed as accused.

(2.) THE petitioners filed an application before the trial Court for dropping the proceedings on the ground that the order of assessment for the year 1977- 78 had been set aside in appeal and since order of assessment dated 3.9.1983 was made basis of the complaint, the prosecution could not continue. The trial court dismissed the application holding that the order of assessment was set aside on a technical ground and allegation of concealment of income could be examined in a criminal case on the basis of evidence, which may be led. Aggrieved by the order of the trial Court dated 17.10.1985, this petition has been filed.

(3.) COUNSEL for the department contested the submissions made on behalf of the petitioners and supported the view expressed by the trial Court.